AG's investigation nets first charges

A grand jury investigation into Monroe County-affiliated
local development corporations, led by the Attorney General's Office, has
resulted in its first set of charges.

Today, Dan Lynch, president of Treadstone Development
Corporation, a firm that contracts with two county-connected local
development corporations, was arraigned on a charge of second-degree larceny and
two charges of falsifying business records, says a press release from the
Attorney General's Office.

Lynch turned himself into law enforcement officials this
afternoon. During his arraignment, he pleaded not guilty and was released on
his own recognizance, which means no bail was set.

The AG's office alleges that Lynch stole a total of $75,000
from his former employer, Siemens Building Technologies, and from the Upstate
Telecommunication Corporation LDC. The LDC leases computers, phones, and other
information technology equipment to the county.

Citing the indictment, the press release alleges that Lynch
used a complicated billing arrangement involving UTC and Toshiba Business
Solutions to submit $75,000 worth of false invoices to Siemens. The billing
scheme was meant to skirt a Siemens policy against entertainment expenses, and
the money was used to pay for a party tent at the 2008 Senior PGA Championship
at Oak Hill Country Club, the indictment says. (The indictment is embedded
below.)

Monroe County Executive Maggie Brooks issued the following
statement in response to the charges:

"An officer of a private company that serves as a
sub-contractor for a public Local Development Corporation was today indicted on
criminal charges. This comes as the result of an investigation in which Monroe
County continues to cooperate. The County is now working closely with respected
former State Attorney General and U.S. Attorney Dennis Vacco to explore all
options to safeguard the continuity of our technology and public safety
communications infrastructure. We will continue to do everything in our power
to protect the continuity of updated communications technologies for First
Responders while making whatever changes are deemed necessary to ensure the
efficient and ethical handling of taxpayer dollars."

The press release from the AG's Office says that the charges
grew out of a 2011 audit by the Comptroller's Office, which "found
irregularities in $1.9 million in management fees at UTC."